Jain Resource Recycling Limited Announces IPO with Offer for Sale
Jain Resource Recycling Limited has announced its Draft Red Herring Prospectus (DRHP) for an upcoming Initial Public Offering (IPO). This IPO is primarily an Offer for Sale (OFS) and includes a fresh issue, with a total size of approximately 2000 crores. This article provides a detailed overview of the company, the IPO structure, and other essential information for potential investors.
Company Overview
Jain Metal Group (JMG) is a leading non-ferrous metal recycling company in India, boasting a legacy of over seven decades. The Chennai-based group is recognized as the largest and fastest-growing in its sector based on revenue for fiscals 2022-2024, as per a Crisil report.
JMG operates state-of-the-art facilities capable of handling multiple products, supported by an extensive global sourcing network. As one of the few Indian brands registered with the London Metal Exchange (LME), JMG recycles and manufactures copper, lead, and aluminum alloys. The company s vertically integrated operations ensure efficient end-to-end recycling processes. Jain Metal Group’s commitment to ESG ensures sustainable and responsible growth, making it a reliable player in the industry.
Key Achievements
JMG achieved the highest revenue growth among its peers in fiscal 2024, with a 44.53% year-on-year increase, resulting in the revenue increase from 2,849.52 crore to 4,428.42 crore. In fiscal 2024, JMG also demonstrated the highest EBITDA growth of 82.98%, which expanded to 227.22 crore from 116.44 crore between fiscals 2022 and 2024.
Financial Overview
Here’s a snapshot of the company’s financials for the most recent fiscal year:
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 1720.59 | 1528.76 | 1115.96 | 1017.71 |
| Revenue | 288.86 | 442.84 | 306.41 | 284.96 |
| Profit After Tax | 112.15 | 163.83 | 91.81 | 86.80 |
| Net Worth | 480.86 | 369.16 | 201.30 | 107.28 |
| Reserves and Surplus | 442.21 | 328.13 | 159.09 | 67.28 |
| Total Borrowing | 969.75 | 909.38 | 732.79 | 750.86 |
Offer for Sale and IPO Structure
The IPO comprises a fresh issue of 500 crore and an offer for sale of 1500 crores. Shares will be allocated to different investor categories as follows:
- Retail Investors: 10%
- Qualified Institutional Buyers (QIB): 75%
- Non-Institutional Investors (NII): 15%
The shares are proposed to be listed on both the BSE and NSE.
Lead Managers and Registrar
The lead managers for the Jain Resource Recycling Limited IPO are:
- DAM Capital Advisors Limited
- ICICI Securities Limited
- Motilal Oswal Investment Advisors Limited
- PL Capital Markets Private Limited
The registrar for the IPO is KFin Technologies Limited.
Conclusion
Jain Resource Recycling Limited’s IPO presents an exciting opportunity for investors. With a strong business model and impressive financial performance, the company is poised for continued growth. Stay tuned for updates on the IPO date and further details as they become available. This will be listed on BSE, NSE.